Oliver Letwin: No, I am not raising the question of fault. I am raising the question of legal certainty about the circumstance. Clause 2 says that if the
“accident is caused by an automated vehicle when driving itself”
it is clear that
“the insurer is liable for that damage.”
It is equally clear, therefore, as a binary choice, that if the vehicle is not being driven by the vehicle itself, but by the driver, the driver is liable. Those two positions are perfectly clear. The insurer of the driver, who may or may not be a separate body from the insurer of the vehicle, takes on responsibility when the driver is driving. We are dealing here with the situation in which some combination of driver and vehicle have been the cause of the accident, during a transitional period from one to the other. The question arises, which of the two insurance policies is the relevant one? I do not believe that there is anything in clause 3 that solves that problem. If the Minister can point out something about the wording of clause 3, I hope you will allow him to do so, Mr Bailey, because it is definitely relevant to the point that the hon. Member for Eltham and I are raising.
My own view is that there is nothing in clause 3 that solves the problem, and therefore the courts will invent a solution. There is nothing wrong with that in general—the courts are very wise and may come up with a perfectly good solution—but the Minister’s purpose is not to say, “Let the courts invent a solution”. If that was his purpose, he would not need the Bill in the first place, because we have a common-law system. If there were no Bill, and if automated vehicles were to proceed and things were to go to court, the courts would find a solution. We would not need the Bill in the first place, if we were going to rely on the courts. The reason for having the Bill is to create legal certainty so that we are not simply trying to find out later, ex post, what the courts will make the law be. We are trying to make the law in advance, so that the insurance industry and the automated vehicle industry know how it will work. For that purpose to be realised, we have to be clear that the law covers all  the possible circumstances—when there is a driver driving the vehicle, when the vehicle is driving the vehicle, and the circumstances between the two when somebody is handing over to the vehicle or the vehicle is handing over to the driver.
My point is that at the moment there is a gap; the Bill does not say what happens during that period. Incidentally, I do not think it matters terribly what the decision is; there just needs to be a decision, so that a case does not revolve around who the relevant insurer is under the circumstances of transition.

John Hayes: I will, but I want to finish this bit otherwise I will get mixed up in my responses.
In respect of the intervention by the hon. Member for Kilmarnock and Loudoun, to be clear, the Bill covers only cars in autonomous mode, because there is an existing insurance framework borne of the Road Traffic Act that triggers insurance when the driver is at least partly at fault and establishes liability. I dealt with this issue earlier. Insurers look at what the causation is, the causation is linked to establishing fault and insurance kicks in accordingly. That is why the Road Traffic Act is relevant because that is where we are already. If we did not have a framework, we would not have a series of insurance products—they would be based on nothing. They are based on the existing law.

John Hayes: I think—to sound like a script from “Dad’s Army”—that the hon. Gentleman is going into the realms of fantasy a bit. His first point was that we need the Bill because the existing Road Traffic Act is not fit. I did not say that the existing Road Traffic Act was fit for the future, because it does not mention autonomous vehicles. The whole point is that it is fit for what it does but we need the Bill because autonomous vehicles are a growing reality and are likely to become so, as a result of research, at some speed in the coming years.
Secondly, of course it is true that the insurance industry has been involved in the work that led to the Bill; its representatives told us so in the evidence sessions. They not only welcomed the Bill; they have been involved through extensive consultations on what is necessary to build the framework to put the products in place. I think we can be clear about the fact that we need the Bill and that the insurance industry has helped create it, and like it.

Order. That was meant to be intervention.